Compliance is not easy, and it is certainly not free. In this second report, PwC Canada brings payroll into focus by quantifying, The cost of employer compliance and public policy implications. Through an in-depth analysis, the research demonstrates that the complex labyrinth of legislation that payroll professionals routinely navigate has resulted in challenges for employers and created a climate that is less than ideal for investment. To support Canada’s economic future, the report frames three key policy areas where government can work with employers to reduce the overall cost of compliance.
NON-COMPLIANCE AND INDIRECT COSTS
The government incurs significant costs to audit employers and ensure compliance with legislation. For employers, additional costs due to non-compliance further increase the weight of an already heavy burden. Add to that indirect costs to hire, train and develop staff, and the costs grow substantially.
POLICY PROPOSAL #2: HARMONIZATION
The lack of policy harmonization between provinces and territories in Canada significantly increases the overall cost of compliance for Canadian organizations. Without changes, Canadian employers will be challenged to expand into new jurisdictions and some provinces will be better positioned to attract investment than others.
POLICY PROPOSAL #3: DIGITAL PAYROLL
A digital payroll solution would allow for payroll information (e.g. salaries and wages, tax deductions, and social program contributions) to be securely accessed by government agencies and departments every time an employee is paid. This means improved data integrity, more effective delivery of social programs, and huge cost savings.